Please find attached a detailed decision report on how Neptune Gourmet Seafood can manage the current situation of increased supply. The report contains an analysis of the situation followed by the problem statement and evaluation criteria for various courses of the viable options possible. The options have been evaluated on various parameters including profitability & brand equity of the company. I hope you find the report appropriate for your consideration & further course of action.

Executive Summary

Neptune is the most upmarket player in the $20 billion industry, and the company is doing everything it can to preserve its premium image among customers. But Neptune's recent investment in state-of-the-art freezer trawlers, along with new fishing regulations, is resulting in catches that are bigger than ever. Though demand is at an all-time high, the company is saddled with excess inventory. The feasible solution to this problem, while keeping in mind the premium brand image of Neptune, is to organise food-fests and turn the issue of selling off the inventory into an opportunity - a marketing tool to venture into new territory.

Neptune Gourmet Seafood, North America’s third largest seafood producer, is the most upmarket player in the $20 billion industry. Over the last 40 years, Neptune has earned an enviable premium image among its customers by producing the best seafood in the region. In order to stay ahead of competition and keep up with its tagline- ‘The best seafood on the Water Planet’, Neptune had invested heavily in this high-end business. Market-Share

The total net-worth of Neptune is $820 million. Neptune accomplishes about 30% of its sales by selling frozen and processed fish products to U.S. grocery chains. About 33% of sales are achieved by supplying to the best restaurants and the biggest cruise lines near its headquarters. Another 33% comes from wholesalers who distribute its products to all the restaurants in the United States. The remaining 4% of sales comes from a fish market outside Fort Lauderdale. Technology

Ever since its inception 40 years ago, Neptune has constantly innovated and adopted new technologies and has thus been able to attract a premium of 25-30% over its competitors. Neptune has recently invested $9 million in six state of the art Freezer Trawlers. These Trawlers, with their advanced fish catching, storing and freezing technologies, have given Neptune an edge over others. With the inclusion of these Trawlers, the company’s stocks have risen. Inventory

Because of its ability to capture and process fish efficiently, the stocks in the inventory are on a rise. In the past three months, Neptune’s finished goods inventory has shot up to 60 days’ supply- twice the normal level and three times what it had been a year ago. Even with an increase in demand in the past four weeks, the inventory has continued to grow. Market Competition

Neptune has had to face stiff completion from seafood providers of China, Peru, Chile, and Japan. But, by investing heavily into the business and by purchasing modern trawlers and freezers, Neptune has been able to keep the sharks at bay. The competition in the market is, in general, fierce and price cuts of Neptune’s product may result in price wars. Problem Statement

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Here's the case of an organization reassessing its strategic priorities when faced with working capital pressures due to capacity being higher than demand, and this has led to a reassessment of its growth strategy . Neptune is under serious threat of facing a stall point because of a situation of price premium captivity . We therefore believe Neptune should launch a mass market brand, for unlocking new growth opportunities beyond its current franchise, and not just for tactically tiding over the temporary crisis. Following are strategic growth opportunities that can be unlocked with a mass market brand. It is however imperative that Neptune opts for a differentiated business model for the mass segment to mitigate any cannibalization threats from its current core business.
Growing the seafood category
Ironically, the vision of the company's founder was to "sell some of the fish so low so that more people would eat sea food" . As the company grew bigger, it set a narrower category definition for itself as "the best seafood in the water planet" . Neptune can grow the seafood category and get a...

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Class – or Mass?
Executive Summary
Neptune Gourmet Seafood is an $840 million corporation that provides premium seafood in North America. They are the 3rd largest seafood producer in the market, and have been around for 40 years, continuously providing the highest quality of product. Despite their success, they are having issues with what appears to be a temporary problem of excess inventory. Due to new coastal laws, investments in new freezer trawlers and fishing technology, Neptune’s trawlers have been able to move further out to sea to fish and maintain the quality the company has been known for. By going further out to sea, they have been bringing back larger than normal catches due to richer fishing grounds, which has caused their warehouse finished goods inventory to be overstocked, with twice the normal supply on hand. Despite the demand in high-end market being at an all time high, it still has not been able to catch up with the increasing supply, and Neptune has been struggling with making a decision on how to deplete excess inventory (60 days) of their “Gold Label” branding.
Situation Analysis
Currently, as the 3rd largest seafood producer in North America, Neptune has a 4.1% market share in a $20 billion market. Their competitive advantage lies in their superior quality in product. Neptune satisfies their customers with their ability of consistently providing the freshest and longer lasting fish, due to...

...products
Cons:
Large investment buildings and gaining restaurant experience
Directly competing with a large portion of customer base
2). Form a partnership with GNC and begin production of fish oil tablets and recommend expansion into preplanned frozen meal market where Neptune would be exclusive supplier of fish. (Further partner with MagicKitchen.com).
Pros:
Long term solution for increase in fish supply
Extends brand to another market, non-seafood eaters
GNC already understands processes to create/has distribution
GNC has distribution system in place for frozen sector, already has target market as well
Cons:
GNC features many brands of fish oils already
Possible cannibalization with GNC advised frozen meal plans
3). Create a mass-market brand called Neptune Silver that sells at lower cost through the same distribution channels.
Pros:
Addresses supply problem now and in the future
Attracts new lower end customer base
Cons:
Decreased revenue
Brand perception is lowered, may lose high-end customer base as well
Possible lost ability to charge a premium in the high-end market
Alternatives Evaluation Matrix
Recommendations
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As we read through the Neptune Gourmet Seafood case study, we found the key issues that Neptune is facing and also some possible solutions suggested by the major players (Jim Hargrove, Rita Sanchez, Nelson Stowe, Pat Gilman, Sandy Mackain, Stanley Renser…); as well as other possible solutions we came up during our group discussion.
First, we need to make sure if the excess of inventory is a temporal problem as Jim Hargrove think or if it’s a more serious long term problem as Rita Sanchez believed, therefore we think that first instead of making a radical price cut inside North America, where Neptune is already well known firm with a premium image among customers, we think there’re other alternative solutions to implement just as:
Inside North America
Benefits
Limitations
1. Seasonal limited offer :
Neptune can sell their excess inventory at inexpensive prices in a season where the demand is high like winter, so customers won’t be aseptic to the product price change, and will keep the premium image they have from Neptune’s products
-Customers won’t be aseptic about the price change and quality of the products.
-It will help to reduce the excess inventory
-More customers inside North America will be able to enjoy high quality products at affordable prices
-Neptune will keep their premium image among customers
-Increased their marketing-advertising
-They will covert a more widely segmentation inside N.A....

...Class- or Mass?: Case QuestionsNeptune Gourmet is facing the problem of an inventory pileup. The company needs a way to sell the excess inventory. At the same time many new ships were purchased and expected to operate, which increases supply. Rita Sanchez proposes a cut in prices of the product by fifty percent. This price cut poses a problem due to the fact the Neptune Seafood is a premium product and usually sells for a higher price than the competition. In order to maintain the premium product image Sanchez proposes starting a mass market brand to decrease inventory. There are many variables but some of the bigger ones include; creating the separate brand at all and whether or not the new brand would be associated or separate from the current Neptune brand. Some executives agree with Sanchez while others take the side of Jim Hargrove in disagreement of the proposal.
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Mass Media and Class
From Class
Explain Mead and Cooley’s concept of the generalized other.
Mead’s concept of the “generalized other” is also essential to his theory, which he defines as an organized and generalized attitude of a social group.
It is basically our perception of what others think of us.
The individual defines his or her own behavior with reference to the generalized attitude of the social group(s) they occupy. When the individual can view himself or herself from the standpoint of the generalized other, self-consciousness in the full sense of the term is attained. People have developed themselves by comparing oneself with the other.
Explain how this concept relates to the mass media.
Generalized other maybe less genera today. This is because media has consolidated significantly over the 30 years.For example the media can show an advertisement where the girl can be winking because there is something in her eye, but a boy looking at it can have a misconception and a vague thought that she can be winking at him.
Explain your own example of a mass media source that socializes its audience.
Seseme street
Explain your own example of a stereotypical portrayal of working class people in the media.
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A. Executive Summary: Neptune Gourmet Seafood is currently struggling with what appears to be a temporary problem of excess inventory. A combination of new coastline regulations and an investment in new fishing vessel technology and freezer trawlers has increased their average catch size while demand in the current segment has not grown as quickly. The Neptune management team is faced with a decision of how to clear out its excess inventory that is not moving fast enough under its Neptune Gold branding. My recommendation is to launch a mass-market product under a different product line in order to monetize excess inventory and position Neptune to capture more of the North American seafood market share. Going forward Neptune management must be more cautious in matching investment in production to growth in market demands.
B. Situation Analysis Summary: Neptune Gourmet Seafood is currently North America’s third largest seafood producer with 4% in market share. Tagged “The Best Seafood on the Water Planet”, Neptune has a reputation to maintain and focuses heavily on its product to keep its customers satisfied.
Neptune has done a great job reaching a variety of customer. 30% of revenues from grocery chains, 33% from wholesalers distributing across the U.S., and the remaining third coming from sales to the biggest cruise lines and also choice restaurants within 250 miles of Neptune’s headquarters....